Spouses who purchase real estate together have to determine how they’re going to set up the title for the property. Many choose to use joint tenancy, which is a form of property co-ownership that enables them to have equal rights to the property.
A joint tenancy also establishes a right of survivorship. This means that if one owner dies, the property automatically passes to the surviving owner. The right of survivorship bypasses probate and can simplify the transfer of the real estate after the owner’s death.
Nevada law sets specific standards
Nevada Revised Statutes Chapter 111 deals with joint tenancy matters. It outlines the requirements for a joint tenancy to be valid. One of these is that the title or deed must clearly state that the property is held in joint tenancy. That designation requires that all tenants acquire their interest in the property at the same time and through the same document. This provides them with equal ownership.
Some couples may not want to set up a property as a joint tenancy. Nevada law also allows them to use community property with a right of survivorship as an option, but only if the couple is married. This functions in a similar manner to the joint tenancy, but has specific tax considerations if one spouse dies.
Because real estate that’s designated as a joint tenancy doesn’t go through the probate process, the surviving spouse can retain control of the home without waiting on probate. Deciding how to set up a real estate title is a major decision, so it may be best to work with someone who understands these matters.